How Much Higher Can Micron Stock Go?
Graphics processing items (GPUs) are the primary information heart chips utilized in synthetic intelligence (AI) improvement. The finest GPUs within the business are provided by Nvidia and Advanced Micro Devicesand each of these corporations supply an vital element referred to as high-bandwidth reminiscence (HBM) from Micron Technology (MU 6.74%).
Micron’s HBM options are fitted alongside superior GPUs, the place they hold information flowing seamlessly to unlock most processing speeds. The firm is experiencing astronomical demand proper now, which is driving a surge in its income and earnings. As a outcome, its inventory has gained a whopping 323% during the last 12 months alone.
But can the blister returns proceed?
Image supply: Getty Images.
Memory is important for processing AI workloads
GPUs want a relentless circulation of knowledge when coaching AI fashions and serving them to end-users. HBM shops this information in a prepared state for when the GPU wants it, and the upper the reminiscence capability, the extra information it will probably maintain within the pipeline. Conversely, a low reminiscence capability would result in bottlenecks, forcing the GPU to pause its workloads whereas it waits to obtain contemporary information.
Micron’s HBM3E answer for the info heart affords 50% extra capability than the competitors, whereas consuming 30% much less power. This is a successful mixture for AI builders who need the quickest processing speeds and the bottom doable price.
But Micron will ramp up manufacturing of its new HBM4E answer this 12 months, which can ship a whopping 60% extra capability than HBM3E, whereas consuming 20% much less power. It is predicted to energy Nvidia’s new Vera Rubin chips, which would be the strongest on this planet for AI workloads once they enter mass manufacturing within the second half of 2026.
Micron’s total 2026 provide of HBM information facilities is already utterly offered out, however its alternative is just simply ramping up. This market was value $35 billion in 2025, and the corporate says it may develop by 40% per 12 months till 2028, reaching $100 billion.
March 18 might be an important day for Micron
Micron wrapped up its fiscal 2026 second quarter on the finish of February, and it is scheduled to report its working outcomes for the interval on March 18. Based on administration’s steerage, the corporate’s complete income probably got here in at a file $18.7 billion, which might be a whopping 132% from the year-ago quarter. That can be a major acceleration from the 56% progress it produced within the first quarter, simply three months earlier.
Micron’s cloud reminiscence section (the place it experiences information heart HBM gross sales) was the star of the present within the first quarter, with income almost doubling 12 months over 12 months to $5.3 billion. I’d count on an excellent stronger outcome on March 18, primarily based on administration’s general top-line forecast.
The different huge factor to observe on March 18 is Micron’s earnings, that are anticipated to blow up larger by 480% 12 months over 12 months to $8.19 per share. As was the case with the highest line, this could even be a serious acceleration from the 175% progress the corporate produced within the first quarter.
Earnings drive inventory costs, so this quantity — together with administration’s forecast for the following quarter — may dictate whether or not additional features are forward for Micron shareholders.
Today’s Change
(-6.74%) $-26.75
Current Price
$370.30
Key Data Points
Market Cap
$417B
Day’s Range
$367.45 – $391.18
52wk Range
$61.54 – $455.50
Volume
77K
Avg Vol
34M
Gross Margin
45.53%
Dividend Yield
0.12%
How a lot larger can Micron inventory go from right here?
The semiconductor business has all the time been very cyclical, that means corporations would spend some huge cash to construct infrastructure after which pull again for a number of years, till it was time to improve. AI has shortened that improve cycle to 12 months — or much less in some instances — so information heart operators are repeatedly spending cash.
In reality, Nvidia CEO Jensen Huang believes information heart operators shall be spending as much as $4 trillion per 12 months on AI infrastructure by 2030 to fulfill demand for cloud computing capability from builders. Lots of that spending will circulation to chipmakers, and for those who imagine Nvidia will proceed promoting truckloads of GPUs, then it is solely logical to be bullish on Micron’s enterprise, given HBM is such a key piece of the puzzle.
Based on Micron’s trailing 12-month earnings of $10.52 per share, its inventory is buying and selling at a price-to-earnings (P/E) ratio of 36.6, which is sort of precisely in step with Nvidia’s P/E. From that perspective, one may argue Micron might be pretty valued.
But here is the place issues get attention-grabbing. Wall Street’s consensus estimate (supplied by Yahoo! Finance) suggests Micron’s full-year fiscal 2026 earnings will are available in at $34.16 per share, putting its inventory at a ahead P/E ratio of simply 11.3.
Data by YCharts.
That means the inventory must rocket larger by one other 223% over the following six months alone simply to take care of its present P/E ratio of 36.6.
I’m not suggesting that it’s going to occur, as a result of there are actually dangers on the horizon. For instance, main start-up OpenAI lately mentioned it is going to cut back its deliberate infrastructure spending between now and 2030 to $600 billion, from $1.4 trillion beforehand. If this turns into an industrywide phenomenon, then Huang’s forecast could be too formidable.
However, there may be actually room for upside in Micron inventory as issues presently stand. It won’t triple over the following six months, however I will not be shocked if it is buying and selling a lot larger.
